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Vancouver, British Columbia — May 8, 2015 Luna Gold Corp. (TSX-LGC, LMA-LGC, OTCQX-LGCUF, “Luna” or the“Company”) announced today that the Company has executed a definitive agreement (the “TransactionAgreement”) with Pacific Road Resources Funds (“Pacific Road”) for a proposed C$20 million debt and C$10million private placement equity financing which, upon closing, will result in the Company receiving grossproceeds of C$30 million (the “Proposed Financing”). As well, the Company has executed definitive agreementsfor the previously announced restructuring of Sandstorm Gold Ltd.’s (“Sandstorm”) existing gold stream anddebt facility (the “Restructuring”). The closing of the Proposed Financing and the Restructuring remains subjectto a number of conditions, including among others, the raising of an additional C$10 million of equity. As part ofthe Proposed Financing, Luna expects to complete a concurrent private placement (the “Concurrent EquityFinancing”) of up to C$15 million which the Company intends to offer to new and existing shareholders.

Highlights

With a restructured gold stream and recapitalized balance sheet, Luna will be in a position to undertake a workprogram that will have the ultimate goal of restarting operations at the Aurizona gold mine (“Aurizona”). Theproposed 18-month work program will involve significant infill drilling, updating the geological model,calculating a new resource estimate, formulating a new, optimized mine plan, producing an updatedprefeasibility study incorporating an upgraded crush and grind circuit and continuing the on-going licensing andpermitting process to ultimately secure all the needed permits to restart Aurizona. The work program has aparticular focus on continuing to build capacity in the local community, with the continuation of skills trainingprograms and the launch of new initiatives to encourage agricultural entrepreneurship in the communitiessurrounding Aurizona.

Marc Leduc, Luna’s CEO said "The fundamentals of the Aurizona asset remain strong and the economics of theproject will be enhanced with the replacement of the old 17% gold stream with the much lower NSR royaltiesand optimization of the mining plan. We have a new team of senior managers in place, that includes acommitted core of existing Brazilian management that together are ready to move the project developmentforward. With the closing of both the Pacific Road financing and the Sandstorm restructuring, the Companyexpects to have the financial resources and working capital necessary to fund the work programs currentlyoutlined. Additionally, the Company has two long-term committed shareholders/partners in Pacific Road andSandstorm to further strengthen our financial and technical mining expertise. Finally, we will extinguish ourexisting bank debt and rebuild the capital structure of the Company.”

The Company expects to use the proceeds from the Proposed Financing to: (i) repay its existing debt facility withSociété Générale (Canada Branch) and Mizuho Corporate Bank (the “Senior Lenders”); (ii) commence an infilldrilling program, prepare engineering studies and submit updated permits at Aurizona; and (iii) for generalworking capital and corporate purposes.

The Proposed Financing, Concurrent Equity Financing and Restructuring are subject to a number of conditions,including the approval from Luna’s shareholders. If the Proposed Financing and Restructuring are notcompleted, the Senior Lenders’ agreement to forbear from commencing enforcement actions against theCompany and its assets will terminate and the Senior Lenders will have the immediate right to commence suchactions, including, without limitation, the initiation of legal proceedings that could result in an insolvencyproceeding against the Company and its subsidiaries. The Company cannot give any assurance that the SeniorLenders will continue to forbear from taking such actions if the Proposed Financing, Concurrent Equity Financingand Restructuring fail to complete, whether due to an absence of shareholder approval of the transactions orotherwise.

Pacific Road Financing Terms

Senior Secured Note

Under the terms of the Proposed Financing, Pacific Road will provide Luna with a C$20 million senior securednote bearing interest at a rate of 10% per annum (the “Note”), payable quarterly in arrears in cash or shares atPacific Road’s election. The Note is required to be secured by first-ranking liens and encumbrances and isexpected to mature on June 30, 2020 and if Luna were to enter into default on the Note the interest rate wouldincrease to 15% per annum. All outstanding amounts, including principal and any remaining accrued interest,will be payable at maturity. Luna has also agreed to provide Pacific Road with 200 million class B common sharepurchase warrants, exercisable for a term of 5 years at C$0.10 (the “Class B Warrants”).Subject to the receipt of all required approvals, Pacific Road will have the right to reduce the Note outstandingas satisfaction of the exercise proceeds of the Class B Warrants.

Private Placement

Pacific Road has also agreed to acquire C$10 million of units in the capital of Luna (“Units”) in a non-brokeredprivate placement (“Private Placement”). Each Unit will consist of one common share and one whole class Acommon share purchase warrant (each, a “Class A Warrant”). Subject to receipt of all required approvals, theissue price of each Unit will be C$0.10 per Unit. The Class A Warrants will have an exercise price of C$0.125 perLuna common share and will be exercisable for a term of 5 years.It is anticipated that an offer will be made to existing shareholders, including Sandstorm, and to new investors,to participate in the Concurrent Equity Financing of Units on the same terms of the Private Placement for up toan additional C$15 million, subject to compliance with securities laws.Any securities issued in the transactions described in this press release will be subject to a four month holdperiod which will expire four months plus one day from the closing date.

Conditions

The Proposed Financing is subject to a number of conditions, including (i) the concurrent completion of theRestructuring, (ii) regulatory approvals such as the approval of the Toronto Stock Exchange, (iii) the approval ofLuna’s shareholders in accordance with the policies of the Toronto Stock Exchange and applicable securities lawsat a meeting which we anticipate will be held on or around June 18, 2015, and (iv) other customary closingconditions. Until the conditions are satisfied there can be no assurance that the Proposed Financing will becompleted. The Proposed Financing, if completed, will raise C$10 million of the C$20 million in equity financingthat is a condition of the Restructuring. The Company anticipates completion of the Proposed Financing on oraround June 30, 2015, assuming the foregoing conditions can be met. If the Proposed Financing and Restructuring are not completed, the Senior Lenders will be in a position to accelerate our senior debt due toour previously announced covenant breaches and commence enforcement proceedings against the Companyand its assets. The Company cannot give any assurance that the Senior Lenders will continue to forbear fromtaking such actions if the Proposed Financing and Restructuring fail to complete, whether due to an absence ofshareholder approval of the transactions or otherwise.

In connection with the Proposed Financing, Pacific Road is requiring that Luna grant it certain rights, including apro rata participation right in future equity financings, registration rights in certain circumstances and the rightto appoint a number of directors to Luna’s board that is equal to Pacific Road’s partially diluted pro rata equityownership in the Company, assuming exercise of its Class B warrants. Assuming the C$15 million PrivatePlacement is fully subscribed, Pacific Road’s fully-diluted pro-rata equity ownership will be 48% and Pacific Roadwill have the right to nominate three of Luna’s seven directors.On closing of the Proposed Financing, Pacific Road will require that Luna pay it a fee equal to 4% of the principalamount of the Debenture and 2% of the gross proceeds from Pacific Road’s subscription to the PrivatePlacement. Pursuant to the Definitive Agreement Luna has agreed in certain circumstances to pay Pacific Road abreak fee of C$1.2 million if the Proposed Financing does not close.

Sandstorm Gold Stream Restructuring

Under the terms of the Restructuring, Sandstorm’s existing 17% gold stream (the “Gold Stream”) on Luna’sAurizona project will be terminated and replaced by two net smelter return royalties (“NSR”) (the “AurizonaProject NSR” and the “Greenfields NSR”) and a convertible debenture. The Aurizona Project NSR covers theentire Aurizona Project, including the current 43-101 compliant Resources, and all adjacent exploration upsidethat is processed through the Aurizona mill, net of third party refining costs. The Aurizona Project NSR paysSandstorm a sliding scale royalty based on the price of gold as follows: 3% if the price of gold is less than or equal to US$1,500 per ounce; 4% if the price of gold is between US$1,500 per ounce and US$2,000 per ounce; and 5% if the price of gold is greater than US$2,000 per ounce.The Greenfields NSR covers the 190,073 hectares of exploration ground held by Luna and is a 2% NSR. Lunawould have the right to purchase one-half of the Greenfields NSR for US$10 million at any time prior toachieving commercial production.

Under the Restructuring, Sandstorm will also receive a US$30 million debenture with interest at a rate of 5% perannum (“Debenture”). The Debenture will be payable in three equal annual tranches of US$10 million plusaccrued interest beginning June 30, 2018. Luna will have the right to convert principal and interest owing underthe Debenture into common shares of Luna as long as Sandstorm owns less than 20% or more of theoutstanding common shares of Luna. Luna can choose to postpone the payment of any instalment until a pointwhen the issuance of shares would not result in Sandstorm owning more than 20% of the common shares ofLuna.Further, the existing Sandstorm Debt Facility will be amended so that the maturity date is extended from June30, 2017 to June 30, 2021, the interest rate is revised to 5% per annum, payable in cash on the maturity date,and Luna would be subject to a default rate of interest equal to 10% per annum.

Management

As announced on February 2, 2015, Mr. Marc Leduc, P.Eng., was appointed President, CEO and Director of theCompany. Since his appointment, Mr. Leduc has been assembling a team that includes a wide experience range.This team includes: Duane Lo, Executive VP and CFO (since August 2009)—Former controller with First Quantum Minerals; Martin Kostuik, Director of Development and Operations—Mining Engineer, MBA. 20+ years of miningexperience in all aspects of mine operations and development; Carol Fries, Director of Environmental & Community Affairs—Over 30 years of experience in theenvironmental, community relations and sustainability sectors; Carlos Paranhos, Exploration Director (Since April 2011)– Geologist with over 30 years of exploration andmining experience in Brazil and similar international Precambrian terrain; and Richard Pearce, PE, Director of Corporate Development—Economist and civil engineer with +20 years ofexperience planning and managing complex mining projects.

Strategic Development Plan

The Aurizona project fundamentals remain strong with the deposit containing a Measured Resource of 0.5million ounces of gold (10.9Mt @ 1.4 g/t) and an Indicated Resource of 2.4 million ounces of gold (52.8Mt @ 1.4g/t) (estimate filed in an update NI 43-101 Technical Report on March 27, 2015) for a total Measured andIndicated resource of 2.9 million ounces of gold (63.7Mt @ 1.4 g/t Au).The new management team has spent the last 3 months developing a strategic plan and also implementing thefirst phases of this plan. The first part of the plan called for the renegotiation of the Sandstorm stream and theelimination of the senior bank debt. With the closing of the Proposed Financing and Restructuring, the Companywill have accomplished both of these objectives. The Company then plans on using the balance of the financingproceeds to commence a significant infill drilling program, updating the geological model, calculating a newresource, formulate a new and optimized mine plan, produce an updated prefeasibility study and continuing thepermitting process to ultimately secure a permit to restart Aurizona. Commencing in mid-2016, Luna expects touse the results of the exploration program and the pre-feasibility study to move on to detailed engineering andultimately the restart of the mine as a hard rock operation.It is anticipated that additional financing will be needed for the construction and restart of the Aurizona minebecause it is likely that a new crushing and grinding circuit will be required to process the different types of orein the existing ore body. The balance of the processing circuit will benefit from the significant capital spent onthe Phase I plant upgrade, which was stopped by the Company in the Third Quarter of 2014, after having spentover $40 million on this Phase I work.The updated and revised mine plan will require amendments to some of our existing permits at Aurizona as wellas other permitting activities for some off-site infrastructure. Luna will be working diligently with the relevantgovernment authorities in Brazil to advance the permitting process. Many of the required permits will beamendments to existing permits.Luna’s community relation’s initiatives will continue to focus on building capacity within the communities in ourarea of influence and on multi- stakeholder partnership models, that involve strengthening local labor skillsthrough the establishment of partnerships with the Industry State Federation (FIEMA), and in partnership withstate and local governments and community associations on campaigns to raise social awareness aboutimportant issues, such as children’s education, community safety and security, and the prevention of domestic violence and substance abuse, and our Open Door program to provide information to the public on an ongoingbasis regarding mining activities in a framework of openness and transparency.

Conference Call and Webcast

Luna will hold a conference call at 11AM Toronto time on •, May 8, 2015 to allow management to discuss theProposed Financing and Restructuring details. The call can be accessed by dialing 416-340-2216 or, for toll-freein North America dial 866-223-7781. For a list of International dial-in numbers use the following link:https://www.confsolutions.ca/ILT?oss=1P29R8662237781. The conference call will be available for replay untilMay 22, 2015 by dialing 905-694-9451 or, for toll-free in North America dial 800-408-3053. The Passcode for thereplay is 3714533. The webcast can be accessed through this link (http://www.lunagold.com/conference-calls/).The presentation will be available on Luna’s website at www.LunaGold.com .About Pacific Road Resources Funds and Pacific Road CapitalThe Pacific Road Resources Funds are private equity funds investing in the global mining industry. They provideexpansion and buyout capital for mining projects, mining related infrastructure and mining services businesseslocated throughout resource-rich regions of the world. The Pacific Road Resources Funds are managed oradvised by Pacific Road Capital Management Pty Ltd. (“PRCM”). The PRCM team, located in Sydney, Australia,San Francisco, USA, and Vancouver, Canada, is comprised of experienced mining investment professionals thathave extensive knowledge and experience in the mining and infrastructure sectors, including considerableoperating, project development, transactional and investment banking experience. For further information onthe Pacific Road Resources Funds and PRCM, please go to their website at www.PacRoad.com.auAbout Luna Gold Corp.Luna is a gold production and exploration company engaged in the operation, discovery, and development ofgold projects in Brazil.On behalf of the Company

LUNA GOLD CORP.Marc Leduc P.Eng.– President, Chief Executive Officer and DirectorWebsite: www.lunagold.comFor further information contact Investor Relations at +1 (604) 568-7993.This news release does not constitute an offer to sell or a solicitation of an offer to buy securities to, or for theaccount or benefit of, persons in Canada or elsewhere, including persons in the United States or “U.S. persons”(“U.S. Persons”), as such term is defined in Regulation S under the United States Securities Act of 1933, asamended (the “U.S. Securities Act”). Any such offer or solicitation will be made at a later date and in compliancewith all applicable laws. Our securities have not been and will not be registered under the U.S. Securities Act orany state securities laws, and may not be offered or sold to, or for the account or benefit of, persons in theUnited States or U.S. Persons unless registered under the U.S. Securities Act and applicable state securities lawsor an exemption from such registration is available.Forward-Looking Statements

VANCOUVER, BC--(Marketwired - June 18, 2015) - Luna Gold Corp. (TSX: LGC) (LMA: LGC) (OTCQX: LGCUF) ("Luna" or the "Company") today provided a general corporate update on the activities of the company and announced the results for its Annual and Special Meeting of Shareholders (the "Meeting" or the "AGM"). Hotel in Vancouver, BC, Canada.

Marc Leduc, Luna's CEO said, "The results from the shareholder vote at our AGM indicate that our shareholders are aligned with management and directors to move Luna Gold forward on its new strategic path. We now have the new plan in place, we have a solid asset in the Aurizona mine and surrounding Brownfields and Greenfields exploration targets, and we have the financial means to start the redevelopment of Luna Gold into a solid, producing company. Since joining Luna four and a half months ago, the new management team, along with existing key Brazilian managers, have worked very hard to fix many of the issues that have caused Luna to struggle during this lower gold price period. Important changes include finding new sources of finances, elimination of the Sandstorm stream and elimination of the bank debt. The team now looks forward to delivering positive news to our shareholders regarding progress on our strategic plan throughout the remainder of the year and beyond."

Corporate Update

The exploration team will be working hard during the remainder of 2015 to deliver on numerous fronts. They will firm up our resource statement through extensive drilling activities, deliver more samples for metallurgical testing, and study the structural controls of the Aurizona deposits to improve our understanding of the mineralization. Getting a better grip on the controls to mineralization will enable us to better understand the distribution of the mineralization within the deposits and the characteristics of the mineralized material as it relates to mining and processing. This knowledge will also help guide future exploration both close to the main Aurizona mine and in the Greenfields areas.

On the development and engineering front, our teams will be active with a number of high priority projects during the remainder of the year. Commencing the Pre-Feasibility Study for the installation of a "hard rock" grinding circuit is an integral part of our plan to move Aurizona back into production. In addition, the team is working to fast track the development of a power line upgrade to ensure that it will be fully functional for the restart of the plant. The team is also reviewing our permits to ensure that all of them are current and aligned with "Hard Rock" plant configuration. Lastly, we will continue to work to maintain and improve good relationships with all our stakeholders including governmental agencies in Brazil, our employees and our Brazilian neighbours.

Annual General Meeting

A total of 106,328,860 common shares of the 141,478,566 shares outstanding were voted at the Meeting, representing approximately 75.16% of the issued and outstanding common shares of the Company. At the Meeting the nominees listed in the Company's management proxy circular were re-elected as directors:

Also at the Meeting KPMG LLP was appointed as auditor of the Company for the coming year, the Company's stock option plan was renewed, and the Company's advance notice policy was approved.

Approval of Sandstorm Gold Stream Restructuring

In addition, shareholders approved the proposed restructuring of Sandstorm Gold Ltd.'s ("Sandstorm") existing gold stream and debt facility (the "Restructuring"). Under the terms of the Restructuring, Sandstorm's existing 17% gold stream on Luna's Aurizona project will be terminated and replaced by two net smelter return royalties (the "Aurizona Project NSR" and the "Greenfields NSR") and a convertible debenture. The Aurizona Project NSR covers the entire Aurizona gold mine including the current 43-101 compliant resources, and all adjacent exploration upside that is to be processed through the Aurizona mill, net of third party refining costs. The Aurizona Project NSR will pay Sandstorm a sliding scale royalty based on the price of gold as follows:

3% if the price of gold is less than or equal to US$1,500 per ounce;4% if the price of gold is between US$1,500 per ounce and US$2,000 per ounce; and5% if the price of gold is greater than US$2,000 per ounce.The Greenfields NSR covers the approximately 200,000 hectares of Greenfields exploration ground held by Luna and is a 2% NSR. Luna would have the right to purchase one-half of the Greenfields NSR for US$10 million at any time prior to achieving commercial production.

Under the Restructuring, Sandstorm will also receive a US$30 million debenture with interest at a rate of 5% per annum ("Debenture"). The Debenture will be payable in three equal annual tranches of US$10 million plus accrued interest beginning June 30, 2018. The Company will have the right to convert the principal and interest owing under the Debenture into common shares of Luna as long as Sandstorm owns less than 20% of the outstanding common shares.

Further, the existing Sandstorm debt facility will be amended so that the maturity date is extended from June 30, 2017 to June 30, 2021, and the interest rate is reduced to 5% per annum, payable in cash on the maturity date, with a default rate of interest of 10% per annum.

Approval of Pacific Road Financing

Shareholders approved the proposed C$20 million debt and C$10 million private placement equity financing with Pacific Road Resources Funds ("Pacific Road") which, upon closing, will result in the Company receiving gross proceeds of C$30 million (the "Pacific Road Financing"). The Pacific Road Financing includes the non-brokered private placement to Pacific Road of 100,000,000 units in the capital of the Company (each, a "Unit") at a price of C$0.10 per Unit. Each Unit will consist of one common share of Luna (a "Luna Share") and one Series A Luna Share purchase warrant exercisable at C$0.125 per Luna Share with an exercise term of 5 years. The C$20 million debt will be evidenced by a senior secured note bearing interest at a rate of 10% per annum (the "Note"). The Note will be secured by first-ranking liens and encumbrances will mature on June 30, 2020. As additional consideration, Luna will issue to Pacific Road 200,000,000 Series B Luna Share purchase warrants exercisable for a term of 5 years at C$0.10 per Luna Share. Proceeds will be used in part to retire existing bank debt.

Approval of Concurrent Equity Financing

Shareholders also authorized Luna to complete a concurrent private placement (the "Concurrent Equity Financing") of up to 150,000,000 Units in the capital of the Company to certain new and existing investors at a price of C$0.10 per Unit for gross proceeds to the Company of up to C$15 million. Each Unit will consist of one common share of Luna (a "Luna Share") and one Series A Luna Share purchase warrant exercisable at C$0.125 per Luna Share, with an exercise term of 5 years. Previously Sandstorm had required that a total of C$20 million in equity be raised but on June 15, 2015 Sandstorm waived this condition.

Conditions

The Restructuring, the Pacific Road Financing, and the Concurrent Equity Financing are subject to a number of conditions. The Company anticipates completion of these items on or around June 30, 2015.

If the Pacific Road Financing and Restructuring are not completed, the Company's senior lenders will be in a position to accelerate Luna's senior debt due to previously announced covenant breaches and commence enforcement proceedings against the Company and its assets. The Company cannot give any assurance that its senior lenders will continue to forbear from taking such actions if the Pacific Road Financing and Restructuring fail to complete.

Any securities issued in the transactions described in this press release will be subject to a four month hold period which will expire four months plus one day from the closing date.

About Luna Gold Corp.

Luna is a gold production and exploration company engaged in the operation, discovery, and development of gold projects in Brazil.

On behalf of the Company

LUNA GOLD CORP.

Marc Leduc P.Eng. -- President, Chief Executive Officer and Director

Forward-Looking StatementsThis release contains certain "forward looking statements" and certain "forward looking information" as defined under applicable Canadian and U.S. securities laws. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. Forward-looking statements include, but are not limited to, statements with respect to the successful completion of the Pacific Road Financing, the Concurrent Equity Financing, the Restructuring or any transaction or transactions similar in nature, regulatory approvals of any such transactions, the continued forbearance of the Company's senior leaders, the Company's ability to continue as a going concern, future or continued mining operations, expected gold production and/or the results of analysis on gold production, the Company's ability to remedy any defaults and the Company's compliance with its debt and other financing agreements. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in Luna Gold Corp.'s periodic filings with Canadian Securities Regulators. These factors include the inherent risks involved in a suspension and potential restart of operations, the effect of the Company's non-compliance with certain covenants in its debt and other financings agreements, inherent risks related to forbearance and the Company's default, any creditor remedies taken by the Company's creditors, the exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other exploration data, the potential for delays in exploration or development activities, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties with or interruptions in production and operations, fluctuating metal prices, unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, regulatory restrictions, including environmental regulatory restrictions and liability, competition, loss of key employees, uncertainties with respect to non-compliance with credit facility covenants and other related risks and uncertainties. The Company undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.